Question: You have split your portfolio 50-50% between the following two stocks: Stock A: E(r)=6% Standard deviation=40% Stock B: E(r)=8% Standard deviation=30% The correlation between the

You have split your portfolio 50-50% between the following two stocks:

Stock A: E(r)=6% Standard deviation=40%

Stock B: E(r)=8% Standard deviation=30%

The correlation between the two stocks is 0.4.

Calculate the standard deviation of your portfolio!

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